What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2021-03-31 compared with 2020-04-14 · 689 added, 692 removed, 73 unchanged (95% of the section changed)

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls

and Procedures

As of the end

of the period covered by this Annual Report, under the supervision and with the participation of DSC’s management, including

its principal executive officer and principal financial officer, DSC conducted an evaluation of its disclosure controls and procedures,

as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended

(the “Exchange Act”).

Based on this evaluation, DSC’s principal executive officer and principal financial officers

have concluded that DSC’s disclosure controls and procedures are not effective to ensure that information required to be

disclosed by DSC in the reports it files or submits under the Exchange Act is recorded, processed, summarized, and reported within

the time periods specified in the Securities and Exchange Commission’s (the “SEC”) rules based on the material

weakness described below.

Management’s Report on Internal

Control Over Financial Reporting

of Disclosure Controls and Procedures

of the end of the period covered by this Annual Report, under the supervision and with the participation of DSCs management,

including its principal executive officer who is also its principal financial officer, DSC conducted an evaluation of its disclosure

controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange

Act of 1934, as amended (the Exchange Act).

Based on this evaluation, DSCs principal executive officer and

principal financial officer concluded that DSCs disclosure controls and procedures are not effective to ensure that information

required to be disclosed by DSC in the reports it files or submits under the Exchange Act is recorded, processed, summarized,

and reported within the time periods specified in the Securities and Exchange Commissions (the SEC) rules

based on the material weakness described below.

Report on Internal Control Over Financial Reporting

management is responsible for establishing and maintaining effective internal control over financial reporting as defined in Rule

9 unchanged sentences

detection of unauthorized acquisition, use, or disposition of DSCs assets that could have a material effect on the financial

Management conducted

an evaluation of the effectiveness of internal control over financial reporting based on the framework in Internal Control—Integrated

Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 1992.

Management’s assessment

included an evaluation of the design of DSC’s internal control over financial reporting and testing of the operational effectiveness

of our internal control over financial reporting.

Management conducted an evaluation

of the effectiveness of internal control over financial reporting based on the framework in Internal Control—Integrated Framework

issued by the Committee of Sponsoring Organizations of the Treadway Commission in its 2013 Internal Control-Integrated Framework.

Management’s

assessment included an evaluation of the design of DSC’s internal control over financial reporting and testing of the operational

effectiveness of our internal control over financial reporting.

Based on this evaluation, management has determined that as of December

31, 2020, there were material weaknesses in our internal control over financial reporting.

The material weaknesses identified during

management’s assessment were (i) a lack of sufficient internal accounting expertise to provide reasonable assurance that

our financial statements and notes thereto are prepared in accordance with GAAP and (ii) a lack of segregation of duties to ensure

adequate review of financial statement preparation.

In light of these material weaknesses, management has concluded that, as of

December 31, 2019, DSC did not maintain effective internal control over financial reporting.

As defined by the Public Company

Accounting Oversight Board Auditing Standard No.

5, a material weakness is a deficiency or a combination of deficiencies, such

that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be

prevented or detected.

In order to ensure the effectiveness of DSC’s disclosure controls in the future, DSC intends on adding

financial staff resources to our accounting and finance department.

Because of its

inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Therefore, even those

systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Report does not include an attestation report of DSC’s registered public accounting firm regarding internal control over

financial reporting.

Management’s report was not subject to attestation by DSC’s registered public accounting firm

pursuant to rules of the SEC that permit DSC to provide only management’s report in this Annual Report.

The material weaknesses identified during management’s

assessment were (i) a lack of sufficient internal accounting expertise to provide reasonable assurance that our financial statements and

notes thereto are prepared in accordance with GAAP and (ii) a lack of segregation of duties to ensure adequate review of financial statement

In light of these material weaknesses, management has concluded that, as of December 31, 2020, DSC did not maintain effective

internal control over financial reporting.

There have been

no significant changes in DSC’s internal control over financial reporting during the most recently completed fiscal quarter

ended December 31, 2018 that have materially affected, or is reasonably likely to materially affect, DSC’s internal control

As defined by the Public Company Accounting Oversight Board Auditing Standard No.

5, a material

weakness is a deficiency or a combination of deficiencies, such that there is a reasonable possibility that a material misstatement of

the annual or interim financial statements will not be prevented or detected.

In order to ensure the effectiveness of DSC’s disclosure

controls in the future, DSC intends on adding financial staff resources to our accounting and finance department that have the requisite

of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Therefore, even

those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation

and presentation.

Annual Report does not include an attestation report of DSCs registered public accounting firm regarding internal control

over financial reporting.

Managements report was not subject to attestation by DSCs registered public accounting

firm pursuant to rules of the SEC that permit DSC to provide only managements report in this Annual Report.

in Internal Control over Financial Reporting

have been no significant changes in DSCs internal control over financial reporting during the most recently completed fiscal

quarter ended December 31, 2020 that have materially affected, or is reasonably likely to materially affect, DSCs internal

control over financial reporting.

OTHER INFORMATION

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The following

table sets forth the names, ages, and positions of DSC’s executive officers and directors as of the December 31, 2019.

officers are elected annually by DSC’s Board of Directors.

Each executive officer holds his office until he resigns, is

removed by the Board, or his successor is elected and qualified.

Each director holds his office until his successor is elected

and qualified or his earlier resignation or removal.

The following table sets forth

the names, ages, and positions of DSC’s executive officers and directors.

Executive officers are elected annually by DSC’s

Board of Directors.

Each executive officer holds his office until he resigns, is removed by the Board, or his successor is elected and

Each director holds his office until his successor is elected and qualified or his earlier resignation or removal.

Chairman of the Board, Chief Executive Officer, Chief Financial Officer

Director, Treasurer, President

Director, Corporate Secretary, President of Technical Operations

Director, President

Director, Executive Vice President

Matthew Grover

Piluso, President .

Piluso is DSC’s Chief Executive Officer, Chief Financial Officer and Chairman of the

Prior to founding DSC in 2001, Mr.

Piluso founded North American Telecommunication Corporation a facilities-based

Competitive Local Exchange Carrier licensed by the Public Service Commission in ten states, serving as the company’s

Chairman and President from 1997 to 2000.

Piluso, Chairman of the Board, Chief Executive Officer, Chief Financial Officer and Treasurer

Piluso is DSCs Chief Executive Officer, Chief Financial Officer and Chairman of the Board.

He has served as Chief Executive

Officer since 2008, Chief Financial Officer since 2014, Treasurer since 2020, and Chairman of the Board since 2008.

Prior to founding

DSC in 2001, Mr.

Piluso founded North American Telecommunication Corporation a facilities-based Competitive Local Exchange Carrier

licensed by the Public Service Commission in ten states, serving as the companys Chairman and President from 1997 to 2000.

Between 1990 and 1997, Mr.

Piluso served as Chairman & Founder of International

Telecommunications Corporation (“ITC”), a facilities-based international carrier licensed by the Federal

Communications Commission.

ITC participated in a consolidation strategy that went public in 1997 for 800 million dollars.

Piluso holds a bachelor’s degree, a Master of Arts in Political Science and Public Administration and a Masters of

Business Administration all from St.

John’s University.

He was an Instructor Professor at St.

Piluso served as Chairman & Founder of International Telecommunications Corporation (ITC),

a facilities-based international carrier licensed by the Federal Communications Commission.

ITC participated in a consolidation

strategy that went public in 1997 for $800 million.

Piluso holds a bachelors degree, a Master of Arts in Political

Science and Public Administration and a Master of Business Administration all from St.

Johns University.

College of Business from 1986 through 1988.

From 2001 to 2013, served on the Board of Trustees of Molloy College.

served on the Board of Governors at St.

John’s University from 2001 to 2016 and Governor Emeritus;

and, is currently

serving on the Board of Advisors for the Nassau County Police Department Foundation.

DSC’s President and Treasurer and serves as a Director.

He was an Instructor

Professor at St.

Johns University, College of Business from 1986 through 1988.

From 2001 to 2013, served on the Board of

Trustees of Molloy College.

Piluso served on the Board of Governors at St.

Johns University from 2001 to 2016 and Governor

and, is currently serving on the Board of Advisors for the Nassau County Police Department Foundation.

We believe that Mr.

Piluso is qualified to serve as

a member of our Board due to his technical expertise and management experience of technology and communications companies.

Schwartz, President and Director

Schwartz is DSCs President and serves as a Director.

He has served as President and Director since December 2016 and served

as Treasurer from 2016 to 2020.

Since 1995, Mr.

Schwartz has served as vice president of ABC Services,

Inc., which he co-founded, where he was responsible for the strategic direction of the company, operations, business development

Over the past two decades, Mr.

Schwartz has honed his expertise in IBM business systems, business continuity and helping

organizations increase IT performance while reducing costs.

Schwartz has served as vice president of ABC Services, Inc., which he co-founded,

where he was responsible for the strategic direction of the company, operations, business development and sales.

Over the past

two decades, Mr.

Schwartz has honed his expertise in IBM business systems, business continuity and helping organizations increase

IT performance while reducing costs.

In addition, Mr.

Schwartz is the founder of Systems Trading, Inc.,

a technology leasing company established in 1997, where Mr.

Schwartz serves as the company’s CEO and president.

founding these two businesses, Mr.

Schwartz is the founder of Systems Trading, Inc., a technology leasing company

established in 1997, where Mr.

Schwartz serves as the companys CEO and president.

Prior to founding these two businesses,

Schwartz was with CAC Leasing for six years, where he started a lease asset sales division in 1991.

This division was established shortly after Mr.

Schwartz earned his bachelor’s degree in business from California State

University in San Bernardino.

This division was established

shortly after Mr.

Schwartz earned his bachelors degree in business from California State University in San Bernardino.

Since 2010, Mr.

Schwartz has served on the Board of Advisors for Data Storage Corporation.

Kempster is DSC’s President of Technical Operations and Secretary and serves as a Director.

We believe that Mr.

Schwartz is qualified to serve

as a member of our Board due to his proven ability to strengthen and improve the operations of the companies he has been a part of his

experience in sales and business development and his knowledge of the industry.

Kempster, President of Technical Operations and Director

Kempster is DSC’s President

of Service Operations and serves as a Director.

Until March 29, 2021 he had served as DSC’s President of Technical Operations.

has served as Director since December 2016, Executive Vice President since 2020, and served as Secretary from 2016 to 2020.

Prior to DCS’s

acquisition of ABC, Mr.

Kempster founded and developed ABC into one of New York’s oldest and most trusted solutions providers

specializing in IBM power environments since 1994.

As President, Tom was the company’s visionary and is responsible for

developing strategic partnerships with many industry leaders such as IBM, Microsoft, and VMware to build a successful solution-driven

ABC Services, with the help of its strategic partnerships works with organizations across the United States and continues

to expand its reach.

Tom began his career in 1985 as a computer technician at Systems Configuration Services (SCS) where he was

trained on IBM System 3x hardware and software operating systems.

In 1989, he was hired by Diversified Data Corp.

as their general

manager to assist in building a Technical Division to support IBM-specific sales.

Tom spearheaded the service division into a

successful and profitable entity within 36 months.

He then joined CAC Leasing where his business development experiences further

inspired his vision to form ABC Services.

Argen has been a Director since 2008.

Argen is a Business Consultant and Developer specializing in the information

technology, telecommunications and construction industries.

He is a seasoned professional that brings 30 years of experience and

entrepreneurial success from working with small business owners to Fortune 500 firms.

acquisition of ABC in 2016, Mr.

Kempster founded and developed ABC Services, Inc., a solutions provider specializing in IBM power environments

Kempster was ABC’s visionary and was responsible for developing strategic partnerships with many industry leaders

such as IBM, Microsoft, and VMware to build a successful solution-driven business.

ABC Services, Inc., with the help of its strategic

partnerships, worked with organizations across the United States and continued to expand.

Kempster began his career in 1985 as a computer

technician at Systems Configuration Services (SCS) where he was trained on IBM System hardware and software operating systems.

he was hired by Diversified Data Corp.

as their general manager to assist in building a Technical Division to support IBM-specific sales.

Kempster spearheaded the service division into a successful and profitable entity.

Kempster then joined CAC Leasing where his

business development experiences further inspired his vision to form ABC Services, Inc.

We believe that Mr.

Kempster is qualified to serve

as a member of our Board because of his practical experience in a broad range of competencies including his industry experience.

Argen, Director

Argen has been a Director since January 12, 2006.

Argen has been a Business Consultant and Developer specializing in the information

technology, telecommunications, and construction industries since 2003.

He is a seasoned professional that brings 30 years of

experience and entrepreneurial success from working with small business owners to Fortune 500 firms.

From 1992 to 2003, Mr.

Argen was the CEO

and founder of DCC Systems, a privately held nationwide Technology Design / Build Construction Development and Consulting Solutions

Argen built DCC Systems from the ground up, re-engineering the firm several times to meet the needs of its clientele

and enabled DCC Systems to produce gross revenues exceeding 100 million dollars in 2000.

Argen has been a guest speaker at

numerous corporate seminars and industry shows.

He has been featured on NBC’s “Business Now” which accredited

his Technology Construction Management methodology as an innovative process for implementing high tech projects on time and within

was the CEO and founder of DCC Systems, a privately held nationwide Technology Design / Build Construction Development and Consulting

Solutions firm.

Argen built DCC Systems from the ground up, re-engineering the firm several times to meet the needs of its

clientele and enabled DCC Systems to produce gross revenues exceeding 100 million dollars in 2000.

Prior to DCC Systems Mr.

Argen held senior management positions at ITT/Metromedia (15 years) and was VP of Engineering

& Operations at DataNet, a Wilcox & Gibbs company (2 years).

Throughout his corporate tenure, he has worked in Operations,

Marketing, Systems Engineering, Telecommunications and Information Technology.

In a career that spans 30 years he has had full

responsibility for technology related and construction projects worth over a billion dollars.

Argen graduated Pace University

with a BPS in Finance.

His commitment to continued education is reflected in his completion to over 2000 hours of corporate sponsored

Argen also holds a Federal Communication Commission (FCC) Radio Telephone 1st Class License.

Hoffman has been a Director since 2008.

Hoffman is a partner at Kelley Drye & Warren LLP in the firm’s

held senior management positions for 15 years at ITT/Metromedia and was VP of Engineering& Operations at DataNet, a Wilcox

& Gibbs company for 2 years.

Throughout his corporate tenure, he has worked in Operations, Marketing, Systems Engineering,

Telecommunications and Information Technology.

Argen graduated Pace University with a BPS in Finance.

His commitment to continued

education is reflected in his completion to over 2000 hours of corporate sponsored courses.

Argen also holds a Federal Communication

Commission (FCC) Radio Telephone 1st Class License.

We believe that Mr.

qualified to serve as a member of our Board because of his practical experience in managing the growth of companies, including technology

and communication companies, and his general knowledge and experience of the industry.

Hoffman, Director

Hoffman has been a Director since August 29,2001.

Hoffman has been a partner at Kelley Drye & Warren LLP in the firms

Washington, D.C.

His commercial practice focuses on real estate and corporate transactions cutting across a wide range

of industries.

Hoffman’s real estate practice involves developers, borrowers, lenders, buyers, sellers, landlords and

Hoffman’s corporate experience includes the purchase and sale of assets and companies as well as venture capital,

equipment leasing and institutional financing transactions.

Hoffman represents telecommunications companies, real estate developers,

lenders, venture capital funds, emerging growth companies, thoroughbred horse industry interests and high net-worth individuals.

Hoffman received his Bachelors’ of Science, cum laude , from the University of Maryland and his Juris Doctor degree,

with honors, from the George Washington University Law School.

Maglione has been a Director since 2008.

Maglione is a partner in the accounting firm Eisner & Maglione

Maglione, a co-founder of DSC, LLC, is a financial management veteran with more than 30 years of experience.

to joining DSC, LLC Mr.

Maglione was a co-founder of North American Telecommunications Corporation, a local phone service provider

which provides local and long-distance telephone services and data connectivity to small and medium sized businesses.

American Telecommunications Corporation Mr.

Maglione was Chief Financial Officer, Executive Vice President and was responsible

for all finance, legal and administration.

During his tenure (September 1997-January 2001) Mr.

Maglione successfully raised over

$100 million in debt and equity funding for North American Telecommunications Corporation.

Prior to North American Telecommunications

Corporation Mr.

Maglione spent over 14 years in public accounting and he brings a broad range of experience related to companies

in the technology, retail services and manufacturing industries.

Maglione is a member of the New York State Society of CPAs.

He holds a Bachelor of Science degree in Accountancy;

a Master of Science in Taxation and is a Certified Public Accountant.

Stein has been a Director since 2010.

Stein founded Savitar in 1988 as a real estate advisory company providing assistance

to beleaguered lenders and financial institutions on their nonperforming real estate assets.

Stein has acted as an expert

witness in countless litigation matters involving real estate transactions and has been appointed as a Receiver, Examiner, and

Trustee in State and Federal Courts.

Stein is an attorney and a member of the Florida Bar Association since 1982.

his Juris Doctor Degree from the University of Miami.

He was graduated with honors by American University with Bachelor of Science

Degrees in finance and accounting.

From September 1982 through 1984, he served as a law clerk to the Honorable Joseph A.

Bankruptcy Judge for the Southern District of Florida.

Stein formed Savitar Realty Advisors, as a real estate

advisory and management organization, whose clients were primarily financial institutions and government agencies.

Cliff Stein) has been appointed Receiver, Examiner, or Trustee in numerous foreclosures or bankruptcies and has been retained

as advisor to financial institutions in connection with their troubled assets or their intended acquisition of portfolios of troubled

Stein currently serves as Chairman and Chief Executive Officer of Savitar.

Stein served as a member of the Board

of Directors of Cenvill Development, formerly a $500 million, publicly-traded real estate concern, having been appointed to the

Board by the FDIC to represent its interest as the single-largest shareholder.

Stein was appointed in 1993 by the Governor

of Florida to serve as a Commissioner on the Florida Real Estate Commission, which appointment was subsequently ratified by the

Florida Senate.

In January 1996, Mr.

Stein was elected to be the Chairman of the Commission.

Stein recently concluded his

second and final term.

John Coghlan.

Coghlan has been a Director since 2011.

Coghlan was a managing director with Lehman Brothers Bank, a global investment

bank based in New York City, for 27 years.

He served in numerous management capacities in the firm’s fixed income and prime

brokerage divisions.

Coghlan was a member of both the firm’s fixed income and equity division’s management committees.

From September of 2008 to July 2010 Mr.

Coghlan worked in the prime broker division at Barclays Capital.

Coghlan is a past

chairperson of the Bond Market Association’s funding division.

Coghlan is a former board member of Lehman Brothers bank

and is currently a board member of Molloy College.

He has also served on the boards of the Dorothy Rodbell Cohen foundation for

Sarcoma Research, the Friends of Mercy Hospital, and the Rockville Centre 911 Fund.

Coghlan received an undergraduate degree

from Massachusetts College of Liberal Arts in 1978 as well as an Honorary Doctor of Laws in 2002.

He also has an EdM from Harvard

Correll has served as a financial and operations executive consultant and board member for SACo, a leading online retail operation,

from 2017 through the present, which has grown from a pre-revenue startup operation in 2017 start to generate $50 million in annual

office since June 1999.

His commercial practice focuses on real estate and corporate transactions cutting across

a wide range of industries.

Hoffmans real estate practice involves developers, borrowers, lenders, buyers, sellers,

landlords and tenants.

Hoffmans corporate experience includes the purchase and sale of assets and companies as well

as venture capital, equipment leasing and institutional financing transactions.

Hoffman represents telecommunications companies,

real estate developers, lenders, venture capital funds, emerging growth companies, thoroughbred horse industry interests and high

net-worth individuals.

Hoffman received his Bachelor of Science, cum laude , from the University of Maryland and

his Juris Doctor degree, with honors, from the George Washington University Law School.

We believe that Mr.

Hoffman’s

legal knowledge, leadership experience and general industry familiarity will be a substantive contribution to the Board.

Maglione, Director

Maglione has been a Director since August 29, 2001.

Maglione has been a partner in the accounting firm Eisner & Maglione

CPAs, LLC since January 2007.

Maglione, a co-founder of DSC, LLC, is a financial management veteran with more than 30 years

of experience.

Prior to joining the Company in 1991, Mr.

Maglione was a co-founder of North American Telecommunications Corporation

(NATC), a local phone service provider which provides local and long-distance telephone services and data connectivity

to small and medium sized businesses, where Mr.

Maglione served as NATCs Chief Financial Officer and Executive Vice President

from September 1997 through January 2001 where he was responsible for all finance, legal and administration functions.

Maglione spent over 14 years in public accounting, and he brings a broad range of experience related to companies in

the technology, retail services and manufacturing industries.

Maglione holds a Bachelor of Science degree in Accountancy from

Hofstra University, a Master of Science in Taxation from LIU Post, and is a Certified Public Accountant.

Maglione is a member

of the New York State Society of CPAs.

We believe that Mr.

is qualified to serve as a member of our Board because of his managerial and executive experiences, and his in-depth knowledge of telecommunications

and technology companies.

Correll, Director

Correll has served as a Director form August 2014 until September 6, 2017 and then was reappointed to serve as a Director on November

5, 2019, and Mr.

Correll previously served as a Director from 2014 to 2017.

Correll has served as a financial and operations

executive consultant and board member for SACo, a leading online retail operation.

From 2001 through 2017, Mr.

Correll founded and served as CEO of Broadsmart Florida, Inc.

(“Broadsmart”),

a facility-based VoIP carrier.

Correll’s leadership as its CEO, Broadsmart grew from a local phone company

to a nationwide carrier delivering IP based dial tone, broadband and ancillary services from small to large companies in every

state, including establishing a strategic business relationship with IBM which allowed Broadsmart to migrate one of the country’s

largest auto supply chains with over 4,000 locations and more than 28,000 phone lines to the Broadsmart platform.

was acquired by Magic Jack in 2016, and Mr.

Correll continued to serve as its CEO until 2017.

Correll received a bachelor’s

degree in Business from Syracuse University.

Correll holds a private pilot's license as well as a USCG Captains license.

Matt Grover .

Grover is Executive Vice President of Business Services at Altice USA (NYSE:

ATUS), which is one of the largest broadband

communications and video services providers in the United States, delivering broadband, pay television, mobile, proprietary content

and advertising services to approximately 4.9 million residential and business customers across 21 states through its Optimum

and Suddenlink brands.

The company operates a4, an advanced advertising and data business, which provides audience-based, multiscreen

advertising solutions to local, regional and national businesses and advertising clients.

Correll founded

and served as CEO of Broadsmart Florida, Inc.

(Broadsmart), a facility-based VoIP carrier.

leadership as its CEO, Broadsmart grew from a local phone company to a nationwide carrier delivering IP based dial tone, broadband

and ancillary services.

Broadsmart was acquired by Magic Jack in 2016 for $42 million, and Mr.

Correll continued to serve as its

CEO until 2017.

Correll attended Syracuse University.

Correll holds a pilots license as well as a USCG Captains

We believe that Mr.

Correll’s

experience with the Company and his executive experience at telecommunications and technology companies will be a positive contribution

to the Board.

Grover, Director

Grover has served as a Director

since November 5, 2019.

Since January 2019, Mr.

Grover has served as the Executive Vice President of Business Services at Altice USA (NYSE:

ATUS), which is one of the largest broadband communications and video services providers in the United States, delivering broadband, pay

television, mobile, proprietary content and advertising services to approximately 4.9 million residential and business customers across

21 states through its Optimum and Suddenlink brands.

The company operates an advanced advertising and data business, which provides audience-based,

multiscreen advertising solutions to local, regional and national businesses and advertising clients.

Altice USA also offers hyper-local,

national, international and business news through its News 12, Cheddar and i24NEWS networks.

Grover began his 19-year Altice

USA career in 2001 when he joined Altice USA’s Lightpath division as Director of Sales Planning.

Since then, he has held

various positions with increasing responsibilities.

Grover assumed the position of Vice President and General Manager

of Optimum West Commercial Services, overseeing sales and sales operations in the Rocky Mountain States of Montana, Wyoming, Colorado,

and Utah, until it was sold to Charter Communications in August 2013.

From 2013 to 2018, he was Senior Vice President of Commercial

Sales, Product, and Marketing.

And in early 2019, he was promoted to EVP of Business Services.

Grover began his 19-year Altice USA career

in 2001 when he joined Altice USA’s Lightpath division as Director of Sales Planning.

Since then, he has held various positions

with increasing responsibilities.

Grover assumed the position of Vice President and General Manager of Optimum West Commercial

Services, overseeing sales and sales operations in the Rocky Mountain States of Montana, Wyoming, Colorado, and Utah, until it was sold

to Charter Communications in August 2013.

From 2013 to 2018, he was Senior Vice President of Commercial Sales, Product, and Marketing.

In early 2019, he was promoted to EVP of Business Services.

Prior to joining Altice USA, Mr.

Grover held various management positions over the course of nearly ten years, including Vice President of Sales at North American

Telecom, Global Account Manager at AT&T in Los Angeles, CA, and District Sales Manager at AT&T in New York, NY.

as an Advisory Board Member of Data Storage Corporation and is a member of the Board of Trustees at Molloy College in Rockville

Grover attained his BA in Economics from Stony Brook University and earned his MBA from the University of Southern

Grover held various management positions

over the course of nearly ten years, including Vice President of Sales at North American Telecom, Global Account Manager at AT&T in

Los Angeles, CA, and District Sales Manager at AT&T in New York, NY.

He serves as an Advisory Board Member of Data Storage Corporation

and is a member of the Board of Trustees at Molloy College in Rockville Centre, NY.

Grover attained his BA in Economics from Stony

Brook University and earned his MBA from the University of Southern California.

believe that Mr.

Grover is qualified to serve as a member of our Board because of his practical experience in a broad range of

competencies including his public company experience.

of the Board of Directors

The Board of Directors has a

standing Audit Committee, Compensation Committee, and Nominating & Corporate Governance Committee.

The following table shows

the directors who are currently members or Chairman of each of these committees.

Board Members

Corporate Governance

Matthew Grover

Joseph Hoffman

Thomas Kempster

Larry Maglione

Argen serves as our independent Lead Director .

Composition of our Board of Directors

Our board of directors currently

consists of eight members.

Our directors hold office until their successors have been elected and qualified or until the earlier of their

death, resignation, or removal.

There are no family relationships among any of our directors or executive officers.

Director Independence

With the exception of Charles

Piluso, Harold J.

Schwartz, and Thomas C.

Kempster, our Board has determined that all of our present directors and our former directors

are independent, in accordance with the Listing Rules of the Nasdaq Stock Market LLC (the “Nasdaq Listing Rules”).

has determined that, under the Nasdaq Listing Rules, Charles M.

Piluso, Harold J.

Schwartz, and Thomas C.

Kempster are not independent

directors because they are employees of the Company.

Our Board has determined that:

John Argen (Chair), Joseph Hoffman, and Matthew Grover are independent under the Nasdaq Listing Rules’

independence standards for

the members of our Board’s audit committee (the “Audit Committee”);

Joseph Hoffman (Chair), Todd Correll, and Matthew

Grover are independent under the Nasdaq Listing Rules independence standards for the members of our Board compensation committee (the

“Compensation Committee”);

and Larry Maglione (Chair), Joseph Hoffman and John Argen are independent under the Nasdaq Listing

independence standards for the members of our Board’s Nominating & Corporate Governance committee (the “Nominating

& Corporate Governance Committee”).

Term of Office

Our directors

are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from

office in accordance with our bylaws.

Our officers are appointed by our board of directors and hold office until removed by the

Our directors are appointed for

a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with

Our officers are appointed by our board of directors and hold office until removed by the board.

Audit Committee

During the fiscal year ended December 31, 2019,

the Company had an audit committee consisting of non-executive directors.

The audit committee members include:

John Coghlan, Cliff

Stein, Thomas Kempster and Harold Schwartz.

Although the Board of Directors does have an audit committee comprised of independent

directors, the audit committee does not have an audit committee financial expert at this time.

DSC believes that the financial

experience and combined skill set of the members of our audit committee are sophisticated enough for performance of the duties

of the audit committee financial expert.

In addition, DSC’s securities are not listed on a national exchange securities and

are not subject to the special corporate governance requirements of any such exchanges.

However, DSC does intend to search for

a qualified individual to fill the role of the audit committee financial expert.

As of January 7, 2021, the Company

has an Audit Committee consisting of non-executive directors.

The Audit Committee members are:

John Argen (Chair), Matthew Grover and

Joseph Hoffman.

DSC’s securities are not listed on a national exchange securities and are not subject to the special corporate governance

requirements of any such exchanges;

however we have applied to list our common stock on the Nasdaq.

The Board has determined that Joseph

Hoffman is an “Audit Committee Financial Expert”

as defined by SEC rules and regulations.

The Audit Committee operates pursuant

to a written charter adopted by the board of directors, which is available on our website at www.DataStorageCorp.com .

describes in more detail the nature and scope of responsibilities of the Audit Committee.

Compensation Committee

As of January 7, 2021, the

Company has a Compensation Committee consisting of non-executive directors.

The Compensation Committee members are:

Joseph Hoffman (Chair),

Todd Correll and Matthew Grover.

DSC’s securities are not listed on a national exchange securities and are not subject to the special

corporate governance requirements of any such exchanges.

The Compensation Committee operates pursuant to a written charter adopted by

the board of directors, which is available on our website at www.datastorage.com .

The charter describes in more detail the nature

and scope of responsibilities of the Compensation Committee.

Nominating & Corporate Governance Committee

As of January 7, 2021, the

Company has a Nominating & Corporate Governance Committee consisting of non-executive directors.

The Nominating & Corporate Governance

Committee members include:

Lawrence Maglione (Chair), John Argen and Mr.

The Nominating & Corporate Governance Committee

operates pursuant to a written charter adopted by the board of directors, which is available on our website at www.datastorage.com .

The charter describes in more detail the nature and scope of responsibilities of the Nominating & Corporate Governance Committee.

Merger and Acquisition Committee

As of January 7, 2021, the Company

has a merger and acquisition committee (the “M&A Committee”) consisting of non-executive directors.

The M&A Committee

Lawrence Maglione (Chair), John Coghlan, John Argen, Todd Correll.

DSC’s securities are not listed on a national exchange

and are not subject to the special corporate governance requirements of any such exchanges.

Family Relationships

One part-time employee, reporting to our controller,

is the wife of the President of Technical Operations and there is no direct report relationship.

Compliance with Section 16(A)

of the Exchange Act.

Section 16(a)

of the Exchange Act requires the Company’s officers and directors, and persons who beneficially own more than 10% of a registered

class of the Company’s equity securities, to file reports of ownership and changes in ownership with the SEC and are required

to furnish copies to the Company.

Several officers and directors are currently behind their Section 16(a) filings.

They are working

to make sure the filings are completed in the near future.

One part-time employee, reporting

to our controller, is the wife of Thomas C.

Kempster, our President of Technical Operations and there is no direct reporting relationship

between such employee and Mr.

Delinquent Section 16(A) Reports.

Section 16(a) of the Exchange

Act requires the Company’s officers and directors, and persons who beneficially own more than 10% of a registered class of the Company’s

equity securities, to file reports of ownership and changes in ownership with the SEC and are required to furnish copies to the Company.

Based solely on the review of the Changes of Beneficial Ownership disclosures on Forms 3, 4 and 5 filed with the Securities and Exchange

Commission, the following officers and directors filed the following number of transactions on Section 16 beneficial ownership disclosure

filings late for transactions:

Piluso filed six Form 5’s for late filings with respect to nine transactions, and two Form 4’s with respect to 15 transactions.

John Argen filed five form 5’s for late filings with respect to five transactions.

Coghlan filed five Form 5’s for late filings with respect to five transactions.

Hoffman filed five Form 5’s for late filings with respect to five transactions.

Thomas Kempster filed two Form 5’s for late filings with respect to two transactions;

one Form 4 for late filings with respect to two transactions;

and one Form 3 late.

Clifford Stein filed five Form 5’s for late filings with respect to five transactions, and one Form 4 with respect to six transactions.

Howard Schwartz filed three Form 5’s for late filings with respect to three transactions, and one Form 3 with respect to one transaction.

Lawrence Maglione filed five Form 5’s for late filings with respect to five transactions.

Todd Correll filed one Form 3 late with respect to one transaction.

Wendy Schmittzeh filed one Form 3 late with respect to six transactions.

Matthew Grover filed one Form 3 late with respect to one transaction.

Code of Ethics

DSC has adopted

a Code of Ethics applicable to its Chief Executive Officer and Chief Financial Officer.

This Code of Ethics is incorporated by

reference to DSC’s Form 10-K filed on March 31, 2009.

has adopted a Code of Ethics applicable to its Directors, Officers and Employees.

A copy of our Code of Ethics is available on

our website at www.DataStorageCorp.com .

EXECUTIVE COMPENSATION

Compensation of Executive Officers

The following

summary compensation table sets forth all compensation awarded to, earned by, or paid to the named executive officers paid by

the Company during the fiscal year ended December 31, 2019, in all capacities for the accounts of our executive officers, including

the Chief Executive Officer (CEO).

of Executive Officers

The following summary compensation

table sets forth all compensation awarded to, earned by, or paid to the named executive officers paid by the Company during the fiscal

years ended December 31, 2020 and December 31, 2019, in all capacities for the accounts of our executive officers, including the Chief

Executive Officer.

Compensation Table

Incentive Plan

Piluso, Chief Executive Officer,

and Chairman of the Board

Piluso, Chief Executive Officer, Chief Financial Officer, Treasurer and Chairman of the Board

Harold Schwartz - President

Tom Kempster – President of Operations

The amounts shown in these columns represent the aggregate grant

date fair value of common stock and option awards computed in accordance with FASB ASC Topic 718.

See “Management’s

Discussion and Analysis of Financial Condition and Results of Operations—Share Based Compensation”

on page 27 for

a discussion of the assumptions made in the valuation of stock and option awards.

Employment Agreements

The Company has an employment agreement

in place with John Camello, President of Nexxis Inc.

Incentive Plan

In October 2008,

the Company adopted, the Euro Trend, Inc.

2008 Equity Incentive Plan (the “2008 Plan).

Under the 2008 Plan, we may grant

options (including incentive stock options) to purchase our common stock or restricted stock awards to our employees, consultants

or non-employee directors.

The 2008 Plan is administered by the Board of Directors.

Awards may be granted pursuant to the 2008

Plan for 10 years from the effective date of the 2008 Plan.

Any grant under the 2008 Plan may be repriced, replaced or regranted

at the discretion of the Board of Directors.

From time to time, we may issue awards pursuant to the 2008 Plan.

terms of options granted under the 2008 Plan (all of which have been nonqualified stock options) are consistent with the terms

described in the footnotes to the “Outstanding Equity Awards at Fiscal Year-End December 31, 2017”

table below, including

five-year graded vesting schedules and exercise prices equal to the fair market value of our common stock on the date of grant.

Stock grants made under the 2008 Plan have not been subject to vesting requirements.

The 2008 Plan was terminated with respect

to the issuance of new awards as of February 3, 2013.

There are 369,839 options outstanding under the 2008 Plan as of December

2010 Incentive

On August 12,

2010, the Company adopted the Data Storage Corporation 2010 Incentive Award Plan (the “2010 Plan”) with 2,000,000

shares of common stock available for issuance under the terms of the 2010 Plan.

On April 23, 2012, the Company amended and restated

the 2010 Plan to change the name of the 2010 Plan to the “Amended and Restated Data Storage Corporation Incentive Award

Tom Kempster –

President of Operations

Company does not currently have any employment agreements with its named executive officers or directors.

Incentive Award Plan

On August 12, 2010, the Company

adopted the Data Storage Corporation 2010 Incentive Award Plan (the “2010 Plan”) that provided for 2,000,000 shares of common

stock reserved for issuance under the terms of the 2010 Plan;

which was amended on September 25, 2013 to increase the number of shares

of common stock reserved for issuance under the Plan to 5,000,000 shares of common stock;

which was further amended on June 20, 2017 to

increase the number of shares of common stock reserved for issuance under the Plan to 8,000,000 shares of common stock;

and further amended

on July 1, 2019 to increase the number of shares of common stock reserved for issuance under the Plan to 10,000,000 shares of common stock.

On April 23, 2012, the Company amended and restated the 2010 Plan to change the name to the “Amended and Restated Data Storage Corporation

Incentive Award Plan”

(the “Plan”).

On September 25, 2013, by written consent in lieu of a meeting by the stockholders owning

a majority of the outstanding shares of Common Stock of the Company and by unanimous written consent of the Board of Directors

in lieu of a meeting, the Plan was amended and restated to reserve 5,000,000 shares of common stock available for issuance under

the terms of the Plan.

On June 20, 2017, by written consent in lieu of a meeting by the stockholders owning a majority of the

outstanding shares of Common Stock of the Company and by unanimous written consent of the Board of Directors in lieu of a meeting,

the Plan was amended and restated to reserve 8,000,000 shares of common stock available for issuance under the terms of the Plan.

On July 1, 2019, by written consent in lieu of a meeting by the stockholders owning a majority of the outstanding shares of Common

Stock of the Company and by unanimous written consent of the Board of Directors in lieu of a meeting, the Plan was amended and

restated to reserve 10,000,000 shares of common stock available for issuance under the terms of the Plan The Plan is intended

to promote the interests of the Company by attracting and retaining exceptional employees, consultants, directors, officers and

independent contractors (collectively referred to as the “Participants”) and enabling such Participants to participate

in the long-term growth and financial success of the Company.

Under the Plan, the Company may grant stock options, which are intended

to qualify as “incentive stock options”

under Section 422 of the Internal Revenue Code of 1986, as amended, non-qualified

stock options, stock appreciation rights and restricted stock awards, which are restricted shares of common stock (collectively

referred to as “Incentive Awards”).

Incentive Awards may be granted pursuant to the Plan for 10 years from the Effective

From time to time, we may issue Incentive Awards pursuant to the Plan.

Each of the awards will be evidenced by and issued

under a written agreement.

The Plan was intended to promote the interests of the Company by attracting and

retaining exceptional employees, consultants, directors, officers and independent contractors (collectively referred to as the “Participants”)

and enabling such Participants to participate in the long-term growth and financial success of the Company.

Under the Plan, the Company

had the right to grant stock options, which are intended to qualify as “incentive stock options”

under Section 422 of the

Internal Revenue Code of 1986, as amended, non-qualified stock options, stock appreciation rights and restricted stock awards, which were

restricted shares of common stock (collectively referred to as “Incentive Awards”).

Incentive Awards were granted pursuant

to the Plan for 10 years from the Effective Date.

There are 8,305,985 options outstanding under the Plan as of December 31, 2020.

If an incentive

award granted under the Plan expires, terminates, is unexercised or is forfeited, or if any shares are surrendered to us in connection

with an incentive award, the shares subject to such award and the surrendered shares will become available for future awards under

The number of shares subject to the Plan, and the number of shares and terms of any Incentive Award may be adjusted

in the event of any change in our outstanding common stock by reason of any stock dividend, spin-off, stock split, reverse stock

split, recapitalization, reclassification, merger, consolidation, liquidation, business combination or exchange of shares, or

similar transaction.

Outstanding Equity Awards at Fiscal Year-End

December 31, 2019

Approval Date

2010 Plan expired on October 21, 2020 and accordingly, there are no shares available for future grants.

March 8, 2021, our Board and stockholders owning in excess of 50% of our outstanding voting securities approved and adopted the 2021

Stock Incentive Plan (the “2021 Plan”).

Pursuant to the terms of the 2021 Plan we can grant stock options, restricted stock

unit awards and other awards at levels determined appropriate by our Board and/or compensation committee.

The 2021 Plan also allows us

to utilize a broad array of equity incentives and performance cash incentives in order to secure and retain the services of our employees,

directors and consultants, and to provide long-term incentives that align the interests of our employees, directors and consultants with

the interests of our stockholders.

An aggregate of 15,000,000 shares of our common stock may be issued under the 2021 Plan, subject to

equitable adjustment in the event of future stock splits, and other capital changes.

Equity Awards at Fiscal Year-End December 31, 2020

Exercisable(1)

Vested options under the Plan.

Unvested options under the Plan.

On March 23, 2011 (the “Stock Grant Date”), Mr.

Piluso was issued a stock grant of 571,429 shares of common stock at $0.35 per share (the “Stock Grant”).

Unexercisable

Vested options under the

Unvested options under

On March 23, 2011 (the

“Stock Grant Date”), Mr.

Piluso was issued a stock grant of 571,429 shares of common stock at $0.35 per share (the “Stock

Grant”).

Piluso received the Stock Grant in lieu of his annual compensation for 2010.

The Stock Grant was fully vested on the Stock

The Stock Grant was fully vested

on the Stock Grant Date.

The Stock Grant was issued to Mr.

Piluso pursuant to the 2008 Plan.

The Stock Grant was fully vested on the Stock

On June 18, 2012, the Stock Grant issuance was rescinded and replaced with a stock option to acquire 548,780 shares

of common stock at an exercise price of $0.39 per share.

On June 18, 2012, the Stock Grant issuance

was rescinded and replaced with a stock option to acquire 548,780 shares of common stock at an exercise price of $0.39 per share.

In addition, on June 18, 2012, Mr.

Piluso received a stock

option to acquire 357,143 shares of common stock at an exercise price of $0.39 per share.

On December 15, 2009 (the “Option Issuance Date”),

Piluso was issued a stock option to acquire 250,000 shares of common stock at an exercise price of $0.36 per share (the

“Stock Option”).

The Stock Option was issued to Mr.

Piluso in lieu of his annual compensation for 2009.

Option was fully vested on the Option Issuance Date and has an expiration date of December 14, 2019.

These options were extended

for one year based on the resolution from the December 11, 2019 board meeting.

The Stock Options was issued to Mr.

pursuant to the 2008 Plan.

The stock options were issued in consideration for services

provided as a member of the Board of Directors.

The stock options were issued in consideration for services

provided as a member of the Board of Advisors.

Compensation of Directors

The following

summary compensation table sets forth all compensation awarded to, earned by, or paid to the named directors paid by the Company

during the fiscal year ended December 31, 2019.

Director Name

Fees earned or paid

Option awards (1)(2)

Non-equity incentive

Non-qualified deferred

All other compensation

Piluso received a stock option to acquire 357,143 shares of common stock at an exercise price

of $0.39 per share.

The stock options were

issued in consideration for services provided as a member of the Board.

The stock options were

issued in consideration for services provided as a member of the Board of Advisors.

These option awards vested

100% three months from the grant date.

These option awards vested/vest

33.33% on each of the one- year, two- year and three- year anniversary following the grant date.

following summary compensation table sets forth all compensation awarded to, earned by, or paid to the Company’s directors during

the fiscal year ended December 31, 2020.

During the year ended December 31, 2020, no compensation was paid to any Company director.

Harold Schwartz

2 unchanged sentences

Matthew Grover

The stock options were issued in consideration for services

provided as a member of the Board of Directors.

The amounts shown in these columns represent the aggregate grant

date fair value of common stock and option awards computed in accordance with FASB ASC Topic 718.

See “Management’s

Discussion and Analysis of Financial Condition and Results of Operations—Share Based Compensation”

on page 14 for

a discussion of the assumptions made in the valuation of stock and option awards.

Piluso was issued stock option to acquire 100,000 shares of common stock at an exercise price of $0.054.